Africa Finance Corporation (AFC) has approved the disbursement of $230 million to telecoms company 9mobile (formerly known as Etisalat Nigeria) to support its growth plans. According to a statement released by Abdulrahman Ado, its executive director for regulatory and corporate affairs, the facility divided into two tranches will be used to repay historic vendor obligations, finance costs and an interest reserve account and payment towards quick-win capex initiatives.
Commenting on the approval, Chairman of the Board of Directors, Alhaji Nasiru Bayero expressed happiness that EMTS’ effort to recover previously ceded ground through an innovative growth plan was being supported by a prestigious Pan-African financial institution.
“We can only express gratitude to the AFC for approving this loan facility that would not only help our business sustainability but also grow it to serve our teeming and loyal customers in Nigeria better. We have completely reviewed our operational, regulatory, financial and technical architecture to ensure we deliver quality services and this facility would go a long way in giving best-in-class services to Nigerians,” he said.
Bayero assured of the company’s resolve to continue its aggressive enhancement of network capacity and innovative features to guarantee optimum value to customers. He added, “Our turnaround efforts are well and truly underway. We had promised when we took over that we would justify the confidence in our brand by making significant investments that will improve the value Nigerians get for using 9mobile. This is part of fulfilling our promise.”
Also commenting on the transaction, 9mobile’s Chief Financial Officer, Phillips Oki said, “The success of this transaction by way of the approval of the board of Africa Finance Corporation is a sound affirmation of our belief that the fundamentals of the 9mobile business are indeed strong. It is also an attestation to the fact that the operational restructuring and financial re-engineering we have done since we assumed ownership have launched 9mobile on the path of growth and profitability. With this facility, our subscribers, members of staff and vendors should get ready to switch on to better days with 9mobile. We will reclaim every lost ground in the market in the coming months.”
The company changed its name from Etisalat Nigeria to 9mobile when the Mubadala Group, its major investor from the United Arab Emirates pulled out its 45% stake in the company in 2017
A new company, Teleology was given the approval to take over 9mobile eight months after it made the initial $50 million non refundable deposit for its acquisition.
